CenterPoint, NVIDIA and Palantir have formed Chain Reaction. Photo via Getty Images

Houston-based utility company CenterPoint Energy is one of the founding partners of a new AI infrastructure initiative called Chain Reaction.

Software companies NVIDIA and Palantir have joined CenterPoint in forming Chain Reaction, which is aimed at speeding up AI buildouts for energy producers and distributors, data centers and infrastructure builders. Among the initiative’s goals are to stabilize and expand the power grid to meet growing demand from data centers, and to design and develop large data centers that can support AI activity.

“The energy infrastructure buildout is the industrial challenge of our generation,” Tristan Gruska, Palantir’s head of energy and infrastructure, says in a news release. “But the software that the sector relies on was not built for this moment. We have spent years quietly deploying systems that keep power plants running and grids reliable. Chain Reaction is the result of building from the ground up for the demands of AI.”

CenterPoint serves about 7 million customers in Texas, Indiana, Minnesota and Ohio. After Hurricane Beryl struck Houston in July 2024, CenterPoint committed to building a resilient power grid for the region and chose Palantir as its “software backbone.”

“Never before have technology and energy been so intertwined in determining the future course of American innovation, commercial growth, and economic security,” Jason Wells, chairman, president and CEO of CenterPoint, added in the release.

In November, the utility company got the go-ahead from the Public Utility Commission of Texas for a $2.9 billion upgrade of its Houston-area power grid. CenterPoint serves 2.9 million customers in a 12-county territory anchored by Houston.

A month earlier, CenterPoint launched a $65 billion, 10-year capital improvement plan to support rising demand for power across all of its service territories.
CenterPoint customers in the Houston area will pay an extra $1 a month to cover costs of the recently approved $2.9 billion resiliency plan starting next year. Photo via centerpointenergy.com

CenterPoint gets go-ahead for $2.9B upgrade of Houston grid

grid resiliency

Texas utility regulators have given the green light for Houston-based CenterPoint Energy to spend $2.9 billion on strengthening its Houston-area electric grid to better withstand extreme weather.

The cost of the plan is nearly $3 billion below what CenterPoint initially proposed to the Public Utility Commission of Texas.

In early 2025, CenterPoint unveiled a $5.75 billion plan to upgrade its Houston-area power system from 2026 through 2028. But the price tag dropped to $2.9 billion as part of a legal settlement between CenterPoint and cities in the utility’s service area.

Sometime after the first quarter of next year, CenterPoint customers in the Houston area will pay an extra $1 a month for the next three years to cover costs of the resiliency plan. CenterPoint serves 2.9 million customers in a 12-county territory anchored by Houston.

CenterPoint says the plan is part of its “commitment to building the most resilient coastal grid in the country.”

A key to improving CenterPoint’s local grid will be stepping up management of high-risk vegetation (namely trees), which ranks as the leading cause of power outages in the Houston area. CenterPoint says it will “go above and beyond standard vegetation management by implementing an industry-leading three-year trim cycle,” clearing vegetation from thousands of miles of power lines.

The utility company says its plan aims to prevent Houston-area power outages in case of hurricanes, floods, extreme temperatures, tornadoes, wildfires, winter storms, and other extreme weather events.

CenterPoint says the plan will:

  • Improve systemwide resilience by 30 percent
  • Expand the grid’s power-generating capacity. The company expects power demand in the Houston area to grow 2 percent per year for the foreseeable future.
  • Save about $50 million per year on storm cleanup costs
  • Avoid outages for more than 500,000 customers in the event of a disaster like last year’s Hurricane Beryl
  • Provide 130,000 stronger, more storm-resilient utility poles
  • Put more than 50 percent of the power system underground
  • Rebuild or upgrade more than 2,200 transmission towers
  • Modernize 34,500 spans of underground cables

In the Energy Capital of the World, residents “expect and deserve an electric system that is safe, reliable, cost-effective, and resilient when they need it most. We’re determined to deliver just that,” Jason Wells, president and CEO of CenterPoint, said in January.

Austin-based Base Power has opened an office and warehouse in Katy. Photo via basepowercompany.com.

Austin energy startup Base Power opens Katy office & expands Houston service

power move

An Austin startup that pairs electricity with backup power has started doing business in Houston.

Base Power announced this spring that it was entering the Houston market, with an initial focus on Cy-Fair, Spring, Cinco Ranch and Mission Bend. Now, Base Power is offering its service to households within the city of Houston.

To support its growth in the Houston area, Base Power has opened an office and warehouse in Katy. More than 30 people now work there. Plans to expand the Katy location are underway.

Base Power provides electricity that’s complemented by home backup power. Homes don’t need to be using solar power to sign up for Base Power’s service.

The startup said its service automatically supplies power to a home when the electric grid fails.

“Unlike traditional backup systems with high upfront costs, Base earns revenue by providing services to the grid — enabling Houstonians to get reliable backup and real savings,” Base Power said.

In addition to its standard service, Base Power has begun offering technology known as the Generator Recharge Port. This component allows a portable generator to plug into the Base battery system to recharge batteries during extended power outages.

“Houston has long been the energy capital of Texas, yet it has also endured some of the nation’s most painful lessons about unreliable power,” said Zach Dell, co-founder and CEO of Base Power. “We see Houston not just as a place to expand, but as a proving ground for how the future of energy should work — resilient, dependable, and built to serve homeowners when it matters most.”

Dell is the only son of Austin tech billionaire Michael Dell, a Houston native.

Base Power’s expansion in Houston adds to its Texas presence. The company now serves homeowners in the Houston, Dallas-Fort Worth and Austin areas. A partnership with homebuilder Lennar and collaborations with two utilities, GVEC and the Bandera Electric Cooperative, are helping drive Base Power’s business.

Base Power has raised more than $270 million in funding since its founding in 2023. This includes a $200 million series B round that will help finance construction of the company’s first factory in Texas and help fuel Base Power’s national expansion.

The startup’s investors include Andreessen Horowitz, Lightspeed Venture Partners, Valor Equity Partners, Thrive Capital, Altimeter, Terrain and Trust.

A new UH survey shows Harris County residents fear power outages more than flooding or wind when severe weather hits. Photo via Getty Images.

Summer outages remain major concern despite CenterPoint upgrades, report shows

power report

A new survey from the University of Houston Hobby School of Public Affairs showed that nearly 70 percent of 2,300 Harris County registered voters polled were very worried or moderately worried about losing power this summer.

The survey asked residents questions about the potential impact of severe summer weather and to evaluate CenterPoint’s efforts to improve the electrical grid over the past year. It was conducted between July 9-18.

Among the three severe weather threats studied—being without power, high winds and flooding—loss of power was the primary concern among respondents. When asked to what extent residents were worried about being without power:

  • 42 percent were very worried
  • 27 percent were moderately worried
  • 19 percent were a little worried
  • 12 percent were not worried at all

Only 25 percent of respondents reported they were very worried about wind damage, and 20 percent were very worried about flooding.

The report also found that 63 percent of respondents held an unfavorable opinion of CenterPoint Energy.

And despite CenterPoint’s $3.2 billion Systemwide Resiliency Plan (SRP), partnerships with AI companies, and its ongoing Greater Houston Resiliency Initiative (GHRI), 44 percent of respondents said they believe CenterPoint has made only "a little bit" progress on improving the grid's overall reliability.

CenterPoint maintains that the SRP is expected to reduce storm-related outages by 1 billion minutes for its 2.8 million customers by 2029. The company also recently reported a 45 percent reduction in the duration of outages for individual customers from January to June of this year.

“We believe that these resiliency actions will help create a future with fewer outages that impact smaller clusters of customers, coupled with faster restoration times for our Greater Houston communities,” Jason Wells, president and CEO of CenterPoint, previously said in a news release.

Read the full report that includes demographic explanations here.
A new white paper from the University of Houston cautions that Texas faces a potential electricity shortfall of up to 40 gigawatts annually by 2035 if the grid doesn’t expand. Photo courtesy UH.

New UH white paper details Texas grid's shortfalls

grid warning

Two University of Houston researchers are issuing a warning about the Texas power grid: Its current infrastructure falls short of what’s needed to keep pace with rising demand for electricity.

The warning comes in a new whitepaper authored by Ramanan Krishnamoorti, vice president of energy and innovation at UH, and researcher Aparajita Datta, a Ph.D candidate at UH.

“As data centers pop up around the Lone Star State, electric vehicles become more commonplace, industries adopt decarbonization technologies, demographics change, and temperatures rise statewide, electricity needs in Texas could double by 2035,” a UH news release says. “If electrification continues to grow unconstrained, demand could even quadruple over the next decade.”

Without significant upgrades to power plants and supporting infrastructure, Texas could see electricity shortages, rising power costs and more stress on the state’s grid in coming years, the researchers say. The Electric Reliability Council of Texas (ERCOT) grid serves 90 percent of the state.

“Texas, like much of the nation, has fallen behind on infrastructure updates, and the state’s growing population, diversified economy and frequent severe weather events are increasing the strain on the grid,” Datta says. “Texas must improve its grid to ensure people in the state have access to reliable, affordable, and resilient energy systems so we can preserve and grow the quality of life in the state.”

The whitepaper’s authors caution that Texas faces a potential electricity shortfall of up to 40 gigawatts annually by 2035 if the grid doesn’t expand, with a more probable shortfall of about 27 gigawatts. And they allude to a repeat of the massive power outages in Texas during Winter Storm Uri in February 2021.

One gigawatt of electricity can power an estimated 750,000 homes in Texas, according to the Texas Solar + Storage Association.

The state’s current energy mix includes 40 percent natural gas, 29 percent wind, 12 percent coal, 10 percent nuclear and eight percent solar, the authors say.

Despite surging demand, 360 gigawatts of solar and battery storage projects are stuck in ERCOT’s queue, according to the researchers, and new natural gas plants have been delayed or withdrawn due to supply chain challenges, bureaucratic delays, policy uncertainties and shifting financial incentives.

Senate Bill 6, recently signed by Gov. Greg Abbott, calls for demand-response mandates, clearer rate structures and new load management requirements for big users of power like data centers and AI hubs.

“While these provisions are a step in the right direction,” says Datta, “Texas needs more responsive and prompt policy action to secure grid reliability, address the geographic mismatch between electricity demand and supply centers, and maintain the state’s global leadership in energy.”

A new report from the Department of Energy says the risk of power blackouts will be 100 times greater in 2030. Photo via Getty Images.

DOE report warns of widespread power blackouts by 2030 amid grid challenges

grid report

Scheduled retirements of traditional power plants, dependence on energy sources like wind and solar, and the growth of energy-gobbling data centers put the U.S. — including Texas — at much greater risk of massive power outages just five years from now, a new U.S. Department of Energy report suggests.

The report says the U.S. power grid won’t be able to sustain the combined impact of plant closures, heavy reliance on renewable energy, and the boom in data center construction. As a result, the risk of power blackouts will be 100 times greater in 2030, according to the report.

“The status quo of more [plant] retirements and less dependable replacement generation is neither consistent with winning the AI race and ensuring affordable energy for all Americans, nor with continued grid reliability … . Absent intervention, it is impossible for the nation’s bulk power system to meet the AI growth requirements while maintaining a reliable power grid and keeping energy costs low for our citizens,” the report says.

Avoiding planned shutdowns of traditional energy plants, such as those fueled by coal and oil, would improve grid reliability, but a shortfall would still persist in the territory served by the Electric Reliability Council of Texas (ERCOT), particularly during the winter, the report says. ERCOT operates the power grid for the bulk of Texas.

According to the report, 104 gigawatts of U.S. power capacity from traditional plants is set to be phased out by 2030. “This capacity is not being replaced on a one-to-one basis,” says the report, “and losing this generation could lead to significant outages when weather conditions do not accommodate wind and solar generation.”

To meet reliability targets, ERCOT would need 10,500 megawatts of additional “perfect” capacity by 2030, the report says. Perfect capacity refers to maximum power output under ideal conditions.

“ERCOT continues to undergo rapid change, and supply additions will have a difficult time keeping up with demand growth,” Brent Nelson, managing director of markets and strategy at Ascend Analytics, a provider of data and analytics for the energy sector, said in a release earlier this summer. “With scarcity conditions ongoing and weather-dependent, expect a volatile market with boom years and bust years.”
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New Gulf Coast recycling plant partners with first-of-kind circularity hub

now open

TALKE USA Inc., the Houston-area arm of German logistics company TALKE, officially opened its Recycling Support Center earlier this month.

Located next to the company's Houston-area headquarters, the plant will process post-consumer plastic materials, which will eventually be converted into recycling feedstock. Chambers County partially funded the plant.

“Our new recycling support center expands our overall commitment to sustainable growth, and now, the community’s plastics will be received here before they head out for recycling. This is a win for the residents of Chambers County," Richard Heath, CEO and president of TALKE USA, said in a news release.

“The opening of our recycling support facility offers a real alternative to past obstacles regarding the large amount of plastic products our local community disposes of. For our entire team, our customers, and the Mont Belvieu community, today marks a new beginning for effective, safe, and sustainable plastics recycling.”

The new plant will receive the post-consumer plastic and form it into bales. The materials will then be processed at Cyclyx's new Houston Circularity Center, a first-of-its-kind plastic waste sorting and processing facility being developed through a joint venture between Cyclix, ExxonMobil and LyondellBasell.

“Materials collected at this facility aren’t just easy-to-recycle items like water bottles and milk jugs. All plastics are accepted, including multi-layered films—like chip bags and juice pouches. This means more of the everyday plastics used in the Chambers County community can be captured and kept out of landfills,” Leslie Hushka, chief impact officer at Cyclyx, added in a LinkedIn post.

Cyclyx's circularity center is currently under construction and is expected to produce 300 million pounds of custom-formulated feedstock annually.

Houston quantum simulator research reveals clues for solar energy conversion

energy flow

Rice University scientists have used a programmable quantum simulator to mimic how energy moves through a vibrating molecule.

The research, which was published in Nature Communications last month, lets the researchers watch and control the flow of energy in real time and sheds light on processes like photosynthesis and solar energy conversion, according to a news release from the university.

The team, led by Rice assistant professor of physics and astronomy Guido Pagano, modeled a two-site molecule with one part supplying energy (the donor) and the other receiving it (the acceptor).

Unlike in previous experiments, the Rice researchers were able to smoothly tune the system to model multiple types of vibrations and manipulate the energy states in a controlled setting. This allowed the team to explore different types of energy transfer within the same platform.

“By adjusting the interactions between the donor and acceptor, coupling to two types of vibrations and the character of those vibrations, we could see how each factor influenced the flow of energy,” Pagano said in the release.

The research showed that more vibrations sped up energy transfer and opened new paths for energy to move, sometimes making transfer more efficient even with energy loss. Additionally, when vibrations differed, efficient transfer happened over a wider range of donor–acceptor energy differences.

“The results show that vibrations and their environment are not simply background noise but can actively steer energy flow in unexpected ways,” Pagano added.

The team believes the findings could help with the design of organic solar cells, molecular wires and other devices that depend on efficient energy or charge transfer. They could also have an environmental impact by improving energy harvesting to reduce energy losses in electronics.

“These are the kinds of phenomena that physical chemists have theorized exist but could not easily isolate experimentally, especially in a programmable manner, until now,” Visal So, a Rice doctoral student and first author of the study, added in the release.

The study was supported by The Welch Foundation,the Office of Naval Research, the National Science Foundation CAREER Award, the Army Research Office and the Department of Energy.

The EPA is easing pollution rules — here’s how it’s affecting Texas

In the news

The first year of President Trump’s second term has seen an aggressive rollback of federal environmental protections, which advocacy groups fear will bring more pollution, higher health risks, and less information and power for Texas communities, especially in heavily industrial and urban areas.

Within Trump’s first 100 days in office, his new Environmental Protection Agency administrator, Lee Zeldin, announced a sweeping slate of 31 deregulatory actions. The list, which Zeldin called the agency’s “greatest day of deregulation,” targeted everything from soot standards and power plant pollution rules to the Endangerment Finding, the legal and scientific foundation that obligates the EPA to regulate climate-changing pollution under the Clean Air Act.

Since then, the agency froze research grants, shrank its workforce, and removed some references to climate change and environmental justice from its website — moves that environmental advocates say send a clear signal: the EPA’s new direction will come at the expense of public health.

Cyrus Reed, conservation director of the Lone Star Chapter of the Sierra Club, said Texas is one of the states that feels EPA policy changes directly because the state has shown little interest in stepping up its environmental enforcement as the federal government scales back.

“If we were a state that was open to doing our own regulations there’d be less impact from these rollbacks,” Reed said. “But we’re not.”

“Now we have an EPA that isn’t interested in enforcing its own rules,” he added.

Richard Richter, a spokesperson at the state’s environmental agency, Texas Commission on Environmental Quality, said in a statement that the agency takes protecting public health and natural resources seriously and acts consistently and quickly to enforce federal and state environmental laws when they’re violated.

Methane rules put on pause

A major EPA move centers on methane, a potent greenhouse gas that traps heat far more efficiently than carbon dioxide over the short term. It accounts for roughly 16% of global greenhouse gas emissions and is a major driver of climate change. In the U.S., the largest source of methane emissions is the energy sector, especially in Texas, the nation’s top oil and gas producer.

In 2024, the Biden administration finalized long-anticipated rules requiring oil and gas operators to sharply reduce methane emissions from wells, pipelines, and storage facilities. The rule, developed with industry input, targeted leaks, equipment failures, and routine flaring, the burning off of excess natural gas at the wellhead.

Under the rule, operators would have been required to monitor emissions, inspect sites with gas-imaging cameras for leaks, and phase out routine flaring. States are required to come up with a plan to implement the rule, but Texas has yet to do so. Under Trump’s EPA, that deadline has been extended until January 2027 — an 18-month postponement.

Texas doesn’t have a rule to capture escaping methane emissions from energy infrastructure. Richter, the TCEQ spokesperson, said the agency continues to work toward developing the state plan.

Adrian Shelley, Texas director of the watchdog group Public Citizen, said the rule represented a rare moment of alignment between environmentalists and major oil and gas producers.

“I think the fossil fuel industry generally understood that this was the direction the planet and their industry was moving,” he said. Shelley said uniform EPA rules provided regulatory certainty for changes operators saw as inevitable.

Reed, the Sierra Club conservation director, said the delay of methane rules means Texas still has no plan to reduce emissions, while neighboring New Mexico already has imposed its own state methane emission rules that require the industry to detect and repair methane leaks and ban routine venting and flaring.

These regulations have cut methane emissions in the New Mexico portion of the Permian Basin — the oil-rich area that covers West Texas and southeast New Mexico — to half that of Texas, according to a recent data analysis by the Environmental Defense Fund. That’s despite New Mexico doubling production since 2020.

A retreat from soot standards

Fine particulate matter or PM 2.5, one of six pollutants regulated under the Clean Air Act, has been called by researchers the deadliest form of air pollution.

In 2024, the EPA under President Biden strengthened air rules for particulate matter by lowering the annual limit from 12 to 9 micrograms per cubic meter. It was the first update since 2012 and one of the most ambitious pieces of Biden’s environmental agenda, driven by mounting evidence that particulate pollution is linked to premature death, heart disease, asthma, and other respiratory illnesses.

After the rule was issued, 24 Republican-led states, including Kentucky and West Virginia, sued to revert to the weaker standard. Texas filed a separate suit asking to block the rule’s recent expansion.

State agencies are responsible for enforcing the federal standards. The TCEQ is charged with creating a list of counties that exceed the federal standard and submitting those recommendations to Gov. Greg Abbott, who then finalizes the designations and submits them to the EPA.

Under the 9 microgram standard, parts of Texas, including Dallas, Harris (which includes Houston), Tarrant (Fort Worth), and Bowie (Texarkana) counties, were in the process of being designated nonattainment areas — which, when finalized, would trigger a legal requirement for the state to develop a plan to clean up the air.

That process stalled after Trump returned to office. Gov. Greg Abbott submitted his designations to EPA last February, but EPA has not yet acted on his designations, according to Richter, the TCEQ spokesperson.

In a court filing last year, the Trump EPA asked a federal appeals court to vacate the stricter standard, bypassing the traditional notice and comment administrative process.

For now, the rule technically remains in effect, but environmental advocates say the EPA’s retreat undermines enforcement of the rule and signals to polluters that it may be short-lived.

Shelley, with Public Citizen, believes the PM2.5 rule would have delivered the greatest health benefit of any EPA regulation affecting Texas, particularly through reductions in diesel pollution from trucks.

“I still hold out hope that it will come back,” he said.

Unraveling the climate framework

Beyond individual pollutants, the Trump EPA has moved to dismantle the federal architecture for addressing climate change.

Among the proposals is eliminating the Greenhouse Gas Reporting Program, which requires power plants, refineries, and oil and gas suppliers to report annual emissions. The proposal has drawn opposition from both environmental groups and industry, which relies on the data for planning and compliance.

Colin Leyden, Texas state director and energy lead at the nonprofit Environmental Defense Fund, said eliminating the program could hurt Texas industry. If methane emissions are no longer reported, then buyers and investors of natural gas, for example, won’t have an official way to measure how much methane pollution is associated with that gas, according to Leyden. That makes it harder to judge how “clean” or “climate-friendly” the product is, which international buyers are increasingly demanding.

“This isn’t just bad for the planet,” he said. “It makes the Texas industry less competitive.”

The administration also proposed last year rescinding the Endangerment Finding, issued in 2009, which obligates the EPA to regulate climate pollution. Most recently, the EPA said it will stop calculating how much money is saved in health care costs as a result of air pollution regulations that curb particulate matter 2.5 and ozone, a component of smog. Both can cause respiratory and health problems.

Leyden said tallying up the dollar value of lives saved when evaluating pollution rules is a foundational principle of the EPA since its creation.

“That really erodes the basic idea that (the EPA) protects health and safety and the environment,” he said.

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This story was originally published by The Texas Tribune and distributed through a partnership with The Associated Press.